Building a Wider
Horizon With Labour
Despite clarifications from the government regarding the purpose of imposing tax on withdrawals from Employee Provident Fund in the Union budget, the garment workers and other salaried class people in Tirupur knitwear cluster sounded critical of the new tax regime. The Finance Ministry, in the clarification note, had stated that the purpose of making only 40 per cent of the total corpus withdrawn at the time of retirement tax exempt under recognised provident fund and national pension scheme, was aimed at encouraging people to invest in pension products rather than withdraw/use the entire corpus after retirement.
